Governor of the Central Bank of Nigeria, Olayemi Cardoso, has announced plans to establish a compliance department. Mr Cardoso announced the plan during the launch of the 2025 Macroeconomic Outlook Report, titled ‘Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond’ by the Nigerian Economic Summit Group. The governor, who participated virtually in the hybrid event held in Lagos, stated that the new compliance department would address past challenges in line with global standards. He added that the department would entrench a transparent and resilient financial sector that can drive Nigeria’s economic growth and development.
Meanwhile The Nigerian Economic Summit Group has painted a positive picture of the nation’s economic outlook for 2025 with the potential to achieve a 5.5 per cent GDP growth rate. NESG, however, pointed out that this positive outlook was only possible provided the current reforms are sustained. The projection was made at the launch of the 2025 Macroeconomic Outlook Report, titled ‘Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond’, which took place in Lagos on Thursday. Olusegun Omisakin, the chief economist and director of research and development at NESG, stressed the importance of balancing price stability with the need for high and strong economic growth. “We believe that at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential for the GDP to end up at 5.5 per cent, and we believe that this is achievable,” he noted. Mr Omisakin also highlighted the need for increased collaboration to tame inflation and sectoral reforms, particularly in agriculture, to optimise performance.
Cardoso said that the apex bank would prioritise exchange rate stability for businesses to thrive while supporting fiscal policies in critical sectors of the economy. Mr Cardoso said that CBN would continue strengthening financial institutions to enable them to support the real sector effectively. He insisted that inflation was the real killer of businesses while explaining measures to keep the figures low. He said that CBN would continue to strengthen financial institutions to support the real sector effectively, especially by establishing the National Credit Guarantee Company to de-risk lending to critical sectors. He reaffirmed CBN’s projection of 4.17 per cent GDP growth for the nation in 2025, representing a positive outlook. Mr Cardoso called for collaboration between monetary and fiscal authorities, alongside private sector participation, to achieve growth. Mr Cardoso added that the growth is anchored on sustained implementation of government reforms, stable crude oil prices, improvements in domestic oil production, and diaspora inflows, among others.
According to him, the apex bank is working tirelessly to find solutions to Nigeria’s economic challenges while expressing joy that ongoing reforms are yielding positive results. He explained that investors were already flocking to the nation but that CBN would not rest on its oars as it strives to tame inflation. Mr Cardoso agreed with the NESG on dialogue towards resolving economic challenges, adding that effective communication would have prevented current inherited economic problems. He said that the apex bank was making some painful but necessary decisions to right the wrongs and set Nigeria on a growth path. NESG however said that inflation, which is the real killer of businesses, was projected to decline in 2025 as the impact of economic reforms began to take effect. He noted that inefficient policy implementation could result in a much lower growth rate of around 3.4 per cent.
Mr Omisakin warned that reversing current policies could lead to a growth rate of just 2.7 per cent. Regarding inflation, Mr Omisakin predicted that it could be moderated to 24.7 per cent by the end of the year. He warned that if the current path was continued, it could rise to 34 per cent, leading to an extended stabilisation period. Mr Omisakin called for collaboration between monetary and fiscal authorities and private sector participation to achieve speedy GDP growth. He stressed the need to boost foreign exchange liquidity and stabilise the exchange rate. He also emphasised the importance of better fiscal performance. “We believe so strongly that this must be the main focus of the government. If inflation is moderated, at the end of the year, it has a lot of benefits concerning all other macro indicators,” he said. Overall, the NESG’s projection suggests that with sustained reforms and efficient policy implementation, Nigeria has the potential to achieve significant economic growth in 2025.
CBN governor announces new compliance department, projects 4.17% GDP, as NESG project 5.5% growth
